Sintana Energy adds new Walvis Basin exposure ahead of 2027 drilling

Sintana Energy

Sintana Energy is expanding its position offshore Namibia through an investment in Maravilla Oil and Gas that gives the company indirect exposure to Petroleum Exploration Licence 37 in the Walvis Basin.

Sintana has agreed to acquire a 44% interest in Maravilla. Maravilla owns 80% of Paragon Oil and Gas, which holds a 100% operated interest in PEL 37. The deal gives Sintana an indirect 35% interest in the licence.

The total consideration is US$6.5 million. Sintana paid a US$500,000 deposit in January 2026 when the original letter of intent was signed. A further US$3 million is being paid in cash at signing and closing, with another US$500,000 allocated to ongoing technical and commercial work on PEL 37. The remaining US$2.5 million will be paid in newly issued Sintana shares priced at US$0.30 per share.

The transaction is subject to regulatory approvals and customary closing conditions. Maravilla is indirectly controlled by Knowledge Katti, a non-executive director of Sintana, so the deal is being treated as a related-party transaction under AIM rules. Sintana’s independent directors have concluded that the terms are fair and reasonable from a shareholder perspective.

PEL 37 covers around 17,295 square kilometres offshore Namibia. Water depths range from approximately 100 to 1,500 metres, while the identified prospects are mainly in water depths of around 300 to 600 metres.

The licence already has a significant technical database. It includes 2,813 square kilometres of 3D seismic acquired in 2014, around 1,000 line kilometres of 2D seismic and data from previous wells, including Cormorant-1 and Sasoil. That existing information gives Sintana and its partners a base from which to refine the prospect inventory and assess future drilling targets.

PEL 37 sits north and east of PEL 82, where Sintana already has indirect exposure through its 49% interest in Custos Energy. Custos holds a 10% interest in PEL 82.

PEL 82 is operated by an affiliate of Chevron and is around 70% covered by 3D seismic. The licence contains the Murumbe-1 and Wingat-1 wells, which encountered source rock and brought light oil to surface. Chevron has indicated that exploration activity on PEL 82 could include a first exploration well in 2027.

Sintana Energy Inc (TSX-V:SEI, OTCQX:SEUSF) is a public oil and natural gas exploration company listed on the Toronto Venture Exchange.

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